Welcome to Computerized Accounting with QuickBooks 2015, the 2017-2018 update.

I wrote this book to give students an introduction to QuickBooks that focuses not only on the software mechanics, but also on the basic accounting concepts that underlie all accounting systems.

This book is not meant to be a user manual. It is meant to teach students how they can work with a computerized accounting system. It is my intention that students will come away from this book with an understanding that it is knowledge of the principles of accounting, not data-entry skills, that are needed to be successful in business.

Target Audience

This book is primarily intended for use in undergraduate accounting programs, although it could be used in business or computer information programs as well. It is expected that students taking this course have already successfully completed a course in financial accounting and have a firm understanding of the principles as well as the mechanics of accounting.

Access to 140-Day Trial Software

Each new copy of this book includes access to a 140-day trial of the QuickBooks 2015 software. Students should refer to the insert at the front of the book, which contains the code and instructions on downloading access to the complimentary software. If you purchase an eBook, please submit a support ticket to receive your code and instructions.

Outstanding Features of This Book

Structure

The book is designed in such a way that the accounting concepts, as well as the software mechanics, get more complex with each section. Other books focus primarily on software data entry. This book allows the students to see why events are recorded the way they are in a computerized accounting system while refreshing students’ knowledge of accounting concepts and reinforcing the accounting and journal entries behind transactions.

Furthermore, rather than treating all company types in one chapter (as most computerized accounting books do), service, merchandising, and project-based companies are broken out separately. This approach helps students learn how the software applications would be implemented in a business environment, so they can practice computerized accounting as they would in the real world.

Clear Writing

The author’s focus on clarity and readability is a cornerstone of the text, and review feedback has been overwhelmingly positive about the quality of the writing and student comprehension. The book is written clearly to aid student

understanding of difficult concepts. Clear explanations of why certain procedures are used in QuickBooks are supported by relevant examples and relatable end-of-chapter assignments, serving to bridge the gap between computerized

accounting concepts and real-world application.

Real-World Scenarios

Most computerized accounting textbooks on the market approach the teaching of QuickBooks in a prescriptive manner, going through the procedures of the software while overlooking how an accountant would actually utilize the software in the real world. Williams’s Computerized Accounting takes a practical approach and shows the student how the software is used in a business environment. In addition to the standard financial reports, students are exposed to job (project) costing, segment, and variance reports.

Unique Pedagogy

The book’s four-color format facilitates student understanding and draws attention to the key concepts and pedagogy. Ample screenshots provide students realistic snapshots of what they will see when working in the software. A host of pedagogical elements serve as helpful illustrations, providing additional context and further concept reinforcement.

HINT Boxes

Hint boxes appear throughout to provide helpful quick tips and tricks for how to work in Quickbooks.

WARNING Boxes

WARNING boxes highlight common pitfalls to avoid.

BEHIND THE SCENES Boxes

BEHIND THE SCENES boxes provide additional context in support of the accounting that is going on inside the computer.

QuickChecks

When students are learning accounting application software, it’s natural for them to focus on the software mechanics and forget that they’re taking an accounting course. To help put some of their focus back on accounting, students are periodically asked a question related to material covered in the chapter. The questions are intended to remind them, either directly indirectly, of underlying accounting concepts. The answers are included at the end of each chapter.

Key Terms

Appearing in red, bold font in the first instance, key terms are defined for the student in the margins of the text for a quick refresher. A comprehensive glossary is included in the back of the book.

Practice Exercises

Practice Exercises are included at the end of every section in the first ten chapters. The exercises provide students an immediate opportunity to practice the material they just learned and prepare them for completing the chapter assignments. The exercises use a fictional but realistic company that provides accounting services to small business clients. The Practice Exercises can be done in class, with the instructor, as part of the lecture component of the course or can be done by the students, on their own, as part of the lab component of the course. Check figures are included with the exercises to reassure students that they are recording the transactions accurately.

End of Chapter Material

End-of-chapter review material includes:

Chapter shortcuts.

Chapter review with matching of terms to definitions and multiple choice questions that are a combination of accounting concepts and QuickBooks application questions.

End-of-chapter assignments featuring realistic companies. Two sets of assignments are included per chapter, allowing the instructor the ability to change the material assigned to various course sections.

The assignments include check numbers for students. This allows them to focus on the process and reduces student frustration.

End-of-Book Assignment

An optional assignment is provided at the end of the book that instructors can assign as an extra credit assignment. It includes two separate assignments requiring students to identify and correct errors in realistic sets of company files.

Appendices

There are a number of additional topics that are helpful to students as they master QuickBooks, and these have been included as end-of-chapter and end-of-book appendices. Instructors may wish to cover these topics in class or have students go over on their own time. End-of-chapter appendices on special topics include:

Students often have a difficult time seeing any similarities between computerized accounting systems and the more manual systems they saw in their introductory financial accounting classes (the journal entries, T-accounts, and general ledgers). To help students connect the two, Appendix A (Is Computerized Accounting Really the Same as Manual Accounting?) is an accounting refresher that compares manual and computerized accounting and provides examples of how journal entries, journals, T-accounts, and trial balances show up in QuickBooks. It also covers cash versus accrual accounting. Other end-of-book appendices review accounting principles and mechanics, including:

Certiport-Mapped

The book has been reviewed by Certiport and maps to the 10 domains that comprise the exam objectives for the QuickBooks Certified User Exam.

What Is the QuickBooks Certified User Exam?

The Intuit® QuickBooks Certification exam is an online exam that is proctored at Certiport Authorized Testing Centers. The certification program validates QuickBooks accounting skills while providing students with credentials that demonstrate real-world abilities to prospective employers. Once passed, test takers receive an official digital certificate representing their skills in QuickBooks. The author has prepared a map correlating the chapter content to the Certiport domains. See preface page x.

Structure

The book is designed in such a way that the accounting concepts, as well as the software mechanics, get more complex with each section. Other books focus primarily on software data entry. This book allows the students to see why events are recorded the way they are in a computerized accounting system while refreshing students’ knowledge of accounting concepts and reinforcing the accounting and journal entries behind transactions. Furthermore, rather than treating all company types in one chapter (as most computerized accounting books do), service, merchandising, and project-based companies are broken out separately. This approach helps students learn how the software applications would be implemented in a business environment, so they can practice computerized accounting as they would in the real world.

Section One—Introduction

The first chapter introduces students to the basic structure of QuickBooks 2015.

File types

Lists

Navigational tools

Preferences

Section Two—Service Companies

The next three chapters (Chapters 2, 3, and 4) cover the sales, purchase, and end-of-month cycles in a service company.

Students are introduced to accounting for basic accounting transactions in a computerized environment.

Sales on account and cash sales

Purchases on account and cash purchases

Customer collections and vendor payments

Bank reconciliations

Standard end-of-month adjusting entries

Financial statement reporting

Section Three—Merchandising Companies

The section introduction includes a description of internal controls in QuickBooks.

Chapters 5, 6, and 7 cover the sales, purchase, and end-of-month cycles in a merchandising company.

Students are introduced to accounting for more complex transactions in a computerized environment.

Purchase and sale of inventory

Sales tax

Sales and purchase discounts

Inventory tracking, adjustment, and valuation

Sales of equipment

Bad debts and bounced checks

Section Four—Payroll, Project Costing, and Billing for Time

Chapter 8 covers basic payroll functions that would be used in all types of companies (service, merchandising, and manufacturing).

Compensation (salaried and hourly)

Paycheck creation

Payroll taxes (withholding and remittance)

Chapter 9 covers job costing and billing for time.

Tracking time

Billing for time and expense

Tracking and reporting profitability by project

Section Five—Beyond the Basics

Chapter 10 covers budgeting and segment reporting.

Creating budgets

Budget variance reports

Use class tracking to report on business segments

Chapter 11 covers a number of special tools in QuickBooks

Memorizing reports and transactions

Customization of forms

Custom reporting

Exporting reports to Excel

Creating reversing entries

Chapter 12 covers the initial set up of companies in QuickBooks and the conversion of existing companies to QuickBooks.

Chapter 13 provides an overview of QuickBooks Online.

·Chapter 1 has been updated to reflect changes to a new password
requirement in QuickBooks

Gayle Williams is an Adjunct Professor of Accounting at Sacramento City College, where she teaches computerized accounting. She received a BA in Comparative Literature and an MBA with a concentration in Accounting from the University of Washington. Professor Williams holds a CPA certification from the states of Washington and California and has worked in public accounting, with Voldal Wartelle & Co, P.S. and Moss Adams LLP, and in private industry.

She has books available for both QuickBooks Desktop and QuickBooks Online.

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